Business

CB warns of new challenges

By Jamila Najmuddin 

With Sri Lanka currently being rated as a low middle income country, the Central Bank on Friday said the country will have to face several new challenges in order to be categorised as an upper middle income country.

The Central Bank released its Annual Report for 2004 and announced the annual average inflation rate, which rose to 7.6% in 2004 compared to 6.3% in 2003, had to be controlled in order to reach this level.

The bank said the Sri Lanka Consumers' Price Index also registered a 7.9% increase in 2004.

The report said inflation, which was low throughout 2003, began to rise in 2004 with the drought and high fuel prices leading to high cost-push inflation which increased money supply and fiscal expansion led to demand-pull inflation.

The Central Bank also said monetary management became more challenging in 2004 with the rise in inflation and increasing domestic credit demand.

On the external front, the report said both trade and current accounts in the BOP recorded deficits. A high import growth of 20%, largely due to high international fuel prices surpassed the 12% growth in exports and the 11% increase in worker remittances.

The surpluses in the capital and financial accounts were not adequate to cover the current account deficit due to lower than expected programme loans from the World Bank (WB) and the Asian Development Bank (ADB). Hence, the overall BOP registered a deficit of US$ 205 million and the effective exchange rate, based on the 24 currency basket, depreciated by 11% and 1.1%, in nominal and real terms respectively.

The Central Bank said international oil prices increased sharply in 2004, raising Sri Lanka's average import price of crude oil to US$ 37 per barrel from US$ 29 per barrel in 2003, resulting in an increase in the oil bill by US$ 372 million.

This, the bank stated, contributed to the worsening of the BOP and the fiscal situation with a substantial increase in subsidy payments to oil distributors and the continuation of inefficient use of fuel since domestic prices have not been fully adjusted to reflect increases in international prices.

The increased subsidy, the report stated, could have been utilised for raising the level of investment substantially, for instance, meeting the entire cost of a large investment project such as the southern expressway.

The bank also said the conduct of fiscal policy in 2004 was a challenge in the face of internal and external shocks that were threatening to slow down the economy. The government's overall fiscal deficit increased to 8.2% of GDP compared with 8.0% in 2003.

The concomitant public sector deficit, which is the total of government deficit and the operational losses of public sector corporations, was 8.4% of GDP in 2004, compared with 7.8% in 2003, mainly due to operational losses of the Ceylon Petroleum Corporation (CPC) and the Ceylon Electricity Board (CEB).

The Bank said in this context the government revised fuel prices upwards in 2004.

However, the bank added, the revisions were not adequate and the spill-over effects of increases in international prices continue to be a heavy burden on the public sector.

According to the report, the increased public sector deficit in 2004 was financed largely through borrowings from domestic sources due to the shortfall in foreign financing.

On the structural front, the Central Bank said reforms are needed to improve institutions, markets and infrastructure. It added the operational efficiency in the public enterprises needs to be improved, especially with respect to developing appropriate pricing mechanisms, enhancing competition and strengthening the organisational set-up.

The bank said a renewed emphasis has to be placed on overcoming the energy crisis in the country by restructuring the energy sector and shifting to alternative low cost sources and that Sri Lanka's external competitiveness depends crucially on the availability of low cost energy, comparable with its competitor countries.

Other reforms include increasing the efficiency in factor markets, enhancing access to finance by rural and SME sectors, providing essential public goods, placing adequate public investment, enhancing civil service efficiency, improving physical and institutional infrastructure facilities, developing incentive schemes for economic agents to become successful with their own resources without government handouts, developing human capital and promoting new technology as well as research and development.

The Central Bank said several downside risks remain in achieving the immediate as well as the medium targets.

The bank said the risk of a further escalation of international oil prices still remains and therefore any further increase in oil prices could exert a heavy burden on the economy and the people.

The bank said further the global economy has already shown signs of a slowing down in 2005. This may threaten Sri Lanka's export performance.

Sri Lanka's major export industry, garments, is faced with increased competition in the world market due to the phasing out of the Multi Fibre Agreement in 2005, the bank added.

According to the bank, any delay in the disbursement of pledged foreign assistance may delay the urgent rehabilitation and reconstruction work, affecting the overall economic performance and the realisation of the expected fiscal consolidation in the medium term.

Thus, the bank asserted the country needs to be prepared to face any of these adversities.

Ceylinco launches Rs. 1.5bn project

Ceylinco Developers Limited launched their latest project, an ambitious Rs. 1.5 billion exclusive, luxury housing complex in Ja Ela on Friday (29). With over 2,000 customers having already purchased Millennium City homes, this latest addition to Millennium City will comprise a total of 100 luxury villas situated on 30 acres of prime land in close proximity to the proposed Colombo Katunayake super highway and the airport.

Speaking at the launch of Millennium Villas , Deputy Chairman, CDL, Bandula Ranaweera said they were overwhelmed by the confidence the public had in the company. "The fact that we have currently over 2,000 customers has given us the confidence to launch such a luxury housing project, a primarily up market one where customers could make their choice from as many as eight different designs and sizes."

Ranaweera said a total of 10 customers had already made reservations for the 40 houses that comprise the first phase of this project and said a special offer of a diamond necklace worth over Rs. 250,000 was being offered to the first 20 customers.

Gas prices to come down if IPPL enters local market

Gas prices are likely to come down if the greenlight is given to Indian Oil Company (IOC) and Petronas, Malaysia, which have sought government permission to export LPG to Sri Lanka and Bangladesh.

Power and Energy Minister, Susil Premajayanth told The Sunday Leader due to intense competition within the gas companies in the country, there was a possibility of a reduction in the existing gas prices.

However, Premajayanth said the government is unaware of IOC's proposal, as the gas sector is currently handled by the private sector. "Even if they have been given the greenlight from the Indian government, we will not interfere as we do not handle the gas sector," he said.

Indianoil Petronas Pvt. Ltd. (IPPL) is a 50 - 50 joint venture between IOC and Petronas. IPPL wants to export LPG to Sri Lanka and Bangladesh from Haldia, a senior official of the company said.

"We have been receiving enquiries from Bangladesh and Sri Lanka for purchase of LPG. We therefore propose to blend propane and butane imported separately and produce LPG as per their specifications and export the same by ship on a FoB basis ex-Haldia to Bangladesh and Sri Lanka," CEO, IPPL, Mrinal Roy wrote to the Indian Petroleum Ministry on April 5.

IPPL wants to export 12,000 tonnes of LPG in 2005-2006, 30,000 tonnes in 2006-2007, 36,000 tonnes in 2007-2008, 42,000 tonnes in 2008-2009 and 50,000 tonnes of LPG in 2009-2010.  The company would earn US$ 20 per tonne of exports.

However, despite plans currently underway to export LPG, when The Sunday Leader contacted Managing Director, Lanka Indian Oil Company (LIOC), M. Nageswaran, he said LIOC was unaware of the proposal as they had not been informed to date. However, Nageswaran maintained if the greenlight is issued to IPPL, gas prices were likely to come down due to the high competition in the market. "With the existing gas prices, the country would benefit from this," he said.

IPPL has been importing LPG since February 2002.  It imported 8,192 tonnes worth Rs. 93.98 million in 2001-02, 10721 tonnes  worth Rs. 133.24 million in 2002-03, 14,435 tonnes  worth Rs. 204.24 million in 2003-04 and 45,631 tonnes worth Rs. 867.17 million in 2004-05.

- Jamila Najmuddin

Seylan Bank ups performance

Seylan Bank has shown a 21.64% growth in loans and advances and 15.06% growth in deposits according to the 2004 balance sheet released last week. The total assets of the bank also grew by 10.16%, which is a reflection of the investments of new funds that have been mobilised through the new deposits during the year.

Profit on ordinary activities after normal loan loss provision, before the additional loan loss provision and taxes amounted to Rs. 1.489 billion showing a substantial growth of 70.7% over the previous years profit of Rs. 0.872 billion. The net interest income increased by 8.5% over the previous year as a result of focusing on mobilising low cost deposits which is reflected in the reduction of interest expenses by 3.5%.

Under the new provisioning requirements by the Central Bank of Sri Lanka, an additional provision of approximately Rs. 800 million was made during 2004. Further, the bank's overheads were controlled through focused strategies including the setting up of a special cost control committee thereby maintaining the cost to income ratio at an industry-accepted level of 62.01%.

During the course of 2004 Seylan Bank embarked on ambitious campaigns aimed at bottom up development by virtue of which various sectors benefited to  a great degree.

New laws to curb money laundering shortly

New laws to curb money laundering are to be presented to cabinet shortly. The legislation is now in its final stages of drafting at the Legal Draftsman's Department and once completed, would be forwarded to the cabinet for approval and then for parliamentary approval.

The Sunday Leader learns under the new legislation, provision would be made for the Prevention of Money Laundering Act. This law is intended to prohibit money laundering in Sri Lanka by providing the necessary means to combat it and to provide for matters connected therewith or incidental thereto.

Under the proposed legislation, a new regulatory authority, the Financial Intelligence Unit (FIU), will also be set up to collect, analyse and disseminate information required for enforcement purposes. The law also provides for cooperation between other regulatory authorities and the FIU, and enables the FIU to cooperate with similar agencies abroad. Aware of the vulnerability of financial systems to criminal activity and its serious consequences and in the absence of specific legislation, the Central Bank introduced certain measures through the regulatory mechanism to enable the detection and investigation of the use of the financial system for laundering the proceeds of crime.

These include the requirement for banks, finance companies and primary dealers to have customer due diligence, record keeping and "know your customer" policies.

The Exchange Control Act can also be used to counter cross border transactions.  The existing legal framework however is not adequate to deal with the present threat of money laundering considering the speed at which funds can now move from one location to another.

Taking into consideration international initiatives, specific legislation to prevent money laundering and to combat the financing of terrorism have now been drafted with the Justice Ministry, Foreign Affairs Ministry, Legal Draftsman's Department, Attorney General's Department, Police Department and the Central Bank involved in the process. The proposed legislation complies to the extent possible with internationally acceptable standards, which are the recommendations of the Financial Action Task Force (FATF) 40+UN 8 guidelines. Under the proposed new regime, the act of money laundering, as well as attempting to and aiding and abetting money laundering will be criminal and extraditable offences. Mechanisms will also provide for the tracking, freezing and confiscation of tainted assets.

The new law will impose requirements on the identification of customers by financial institutions, and the reporting of suspicious transactions and cash transactions above a certain prescribed value and on record keeping.

- Mandana Ismail Abeywickrema

JVP acting like moda kollo?

By Dinesh Weerakkody  

The UNP charged the country was drifting towards a state of anarchy with conflicts among the coalition partners of the government and within the cabinet of ministers while essential services were facing the threat of a breakdown. In addition they say there is widespread agitation building in the south of the country over the government's failure to effectively handle the post tsunami crisis coupled with soaring inflation and failed promises.

The common feeling today is the UPFA does not have the competence to govern while the JVP has betrayed the people and policies that propelled them into power. Some UPFA ministers have now resorted to display their unity despite Chandrika Kumaratunga attacking the government saying she cannot work with people who do not have experience or knowledge of matters concerning governance.

Solutions

People want solutions to their problems and their concern is the government, divided as it is on many vital national issues, is unable to move forward. Their squabbling like children over issues that have to be solved on an urgent basis offer no solace to the suffering thousands languishing in the tsunami camps.

On the other hand, the JVP has been vowing to pull out of the government if Kumaratunga opted to privatise the CPC or CEB, or worked out a mechanism with LTTE to disburse the tsunami aid. This threat has now become a joke in political and business circles and as a result today the JVP is branded as the "moda kollas" for their lack of maturity and inexperience relating to matters of government.

If the JVP were true to its words and conscience, it would have left the UPFA by now. The JVP and the SLFP have no common economic policy and the JVP was anti-peace all along so trying to iron out differences in government is making governance difficult for Kumaratunga and as a result everything is heading to a standstill.

Situation

It is now over three years since Ranil Wickremesinghe took the step to sign the ceasefire agreement with the LTTE leader. Since then no other leader in the UPFA has had the imagination or the courage to move this forward. The duty of providing speedy relief to the thousands of tsunami victims, particularly those languishing in the east and the north regions, is the duty of the government. However with the LTTE and Kumaratunga wrangling over the creation of a proper mechanism, the people of the north and east have been denied of the tsunami aid.

The problems in the CPC and CEB have also reached a breakdown point and are being pushed under the carpet for want of a collective approach.  Many more public institutions like the SLTB and CWE keep wobbling in the absence of political will. Inflation is now running at 18 %. The building 150,000 houses for those displaced is not a trivial issue either. The challenge before the government is to rehouse these people as quickly as possible and use this opportunity to give them a better deal than they had before.

The opportunity the donors are offering us is unprecedented, therefore the JVP should not hold the government to ransom, threatening to bring it down if the LTTE is brought into the aid distribution mechanism. Instead they should work with the government to make those brave decisions that can alleviate the suffering of the tsunami victims.

Kumaratunga has completed 10 years as President. While the UNP is saying she has accomplished next to nothing, her supporters say she, unlike her predecessors, genuinely fought for peace and freedom. Given the lack of mutual trust between Wickremesinghe and Kumaratunga and her overwhelming desire to remain in power, the UNP is demanding that the presidential election should be held before the end of the year.

According to the UNP, the proposed referendum costing over Rs. 1 billion to extend her term, abolish the presidency or for the joint mechanism is a scam for her to stay in power and not to serve any other purpose.

Given the situation now, before long the country is going to face an economic and political crisis that could very well lead Kumaratunga to her own undoing. The reality is the JVP has made governing very difficult for Kumaratunga by effectively blocking any form of compromise with the LTTE or pursing with the economic reforms that are required to keep her in the good books of the donors. The net impact of all this is that they have effectively blocked the flow of foreign aid, whether for tsunami or national development.

Time to decide

In this backdrop the time has come for Kumaratunga to decide whether she is going to risk her political life and do what is good for the country or focus on backroom politicking to extend her political life despite widespread agitation building up against her government for messing up the tsunami reconstruction. Going by her past track record she would obviously look at an option that would ensure a stable political life for herself.

The referendum aimed at abolishing the executive presidency is most likely to be her preferred option. A referendum simply held to extend her political life is bound to cause a lot of political turmoil within the ranks of the SLFP, the UNP and also the LTTE. However, given the current political and economic climate, it may not be conducive and wise for Kumaratunga to waste tax payers' money to run a referendum for mere personal gain at the cost of the entire country.

Kumaratunga perhaps should come terms with the fact that her reign is finally ending and work towards the resolution of the conflict and prevent the economy taking a further nose dive. Kumaratunga has little choice but to go ahead with the joint mechanism and privatisation to ensure she gets the aid pledged and since the JVP is divided and does not want to give up political office she should make some brave choices for the sake of the country.

Future

If the JVP is standing in the way of peace and the JVP's campaign of hate is preventing the country moving forward, Kumaratunga should try and work with the opposition without intimidating it unnecessarily. This will not happen if Kumaratunga is focused on seeking another six years, despite the fact her actions could very well inflict deep and abiding wounds on the polity of Sri Lanka. It is however up to the UNP to curb her excesses and to ensure the government keeps to its promise of providing employment and housing for the tsunami victims.

Further, the JVP is keen on becoming the next major opposition party at a future general election and is now pursuing its own political agenda. It will continue to engage all trade unions and criticise the SLFP for its political survival until it eats into the SLFP vote base and emerges as the main centre of the left political party and finally becomes an alternative to the UNP. If only Kumaratunga can least now accept the reality that JVP is milking the SLFP dry and preventing the emergence of a national consensus, she could wrap up her term on a positive note.

In the final analysis, we are faced with a deepening political crisis and a serious financial crisis if the monies pledged are held back therefore to mobilise those funds she needs to work towards a national consensus and the future fate of Kumaratunga and the JVP will depend on receiving those funds and how it moves on with the tsunami reconstruction work and the stalled peace process.

Controversy surrounds container pile-up in port

By Jamila Najmuddin 

Controversy surrounds the delay in releasing 650 containers consisting of tsunami aid held at the Colombo Port.

Despite a complaint lodged by the shippers regarding the delay, Customs officials are of the view the main cause for this is, many shippers being unaware of the arrival of their goods at the Colombo Port.

According to the shippers, following a meeting held last week regarding the delay with the Ports and Aviation Ministry officials, it was decided the Ports Authority and Customs Department would look into the matter soon.

However, according to the Customs Department, 194 containers consisting of flour has already been released to the World Food Programme and 55 containers consisting of milk powder and other various products released to the Social Services Ministry within the last few days.

"These containers have been held in the Colombo Port for weeks but the containers are now being released to the shippers," Director General, Customs, S. Jayatilleke told The Sunday Leader.

Jayatilleke said the two main causes for the delay are most of the containers being held within the SAGT controlled area - an area in the Colombo Port owned by P&O Terminal, and the lack of awareness regarding the arrival of goods amongst the shippers.

He added that following the meeting held last week, the Ports Authority has also decided to waive charges in releasing the containers so that shippers would collect their goods soon.

"The secretary to the Finance Ministry has also requested the SAGT officials to waive charges on the containers held within their area. However, we have received no response from them upto date," Jayatilleke said, adding that due the delay the shippers would have to pay large amounts to clear their goods.

Following the goods being held in the port for weeks, Jayatilleke said the Ports Authority and the Customs Department would hold back the containers for another week after which they would be removed from the port for inspection.

"The Social Services Ministry has been informed about the matter and if shippers do not clear the goods within the next few days, the aid will be handed to the Ministry for distribution," Jayatilleke added.

NTB ends first quarter with profit up 47%

Nations Trust Bank (NTB) announced a 47% increase in profit after tax for the three months ended March 2005, with a group profit after tax of Rs. 22.5 million compared to the same period last year. Operating profit before VAT and tax increased by 36% to Rs. 48.6 million reflecting the continuing growth momentum which the bank showed in the second half of 2004.

Customer deposits increased by 61% to Rs. 11 billion compared to March 31, 2004 while advances also grew by 43% to Rs. 9.4 billion during the same period. The focus on acquisition of profitable customers has begun to show good returns largely due to the significant improvement of information technology capability and an emphasis on improving customer service levels.A cost / income ratio of 82% (a drop from 75%), a healthy gross non performing loans ratio of 5.2% and a comfortable liquidity ratio of 25%, all reveal the growing strength and stability of this relatively new bank. Tier II capital adequacy ratio was 13.4% as at the end of the quarter, with a further Rs. 320 million of the subordinated debt (to be included under tier II capital) to be drawn down in the second quarter, which will improve this ratio still  further.

All the business units serving the different target segments had an excellent quarter. The expansion strategy was deferred as planned with a view to consolidate its activities while the initiatives implemented in the period have paid rich dividends and are amply reflected in the results reported.

The bank has an online branch network that now stands at 26, with 30 ATMs that are linked to the American Express network. The ATM card which is linked to the International CIRRUS networks enables local access at over 200 ATMs. The flagship Inner Circle personal banking product showed good progress, whilst Nations Leasing, that was started in this quarter, got off to a good start. The quarter saw a number of credit card initiatives launched that included 'Fuel Up' with American Express and loan installment schemes for the April festive season.

CEO, NTB , Zulfiqar Zavahir said, "We are quite pleased with the results of the first quarter despite sluggish market conditions. Extreme focus and a well thought out business model have now started to show good returns. We can be proud of the significant progress the bank has made and I have no doubt the bank will maintain the momentum of growth and profitability during the course of the year."

Tea production: Emphasis on quality, not quantity

Despite a growth in tea production of 308 million kilogrammes in 2004, compared to the 303.2 million kilogrammes during the previous year, Sri Lanka's tea exports have recorded a notable decline of 0.5 million kilogrammes during the same period.

With Kenya now placed at the number one spot as the largest tea exporter in the world, the local tea industry is facing a risk of severe competition against countries such as India, Vietnam, Indonesia and Bangladesh.

However, despite the decline in exports, the Sri Lanka Tea Board (SLTB) is of the view although the country's exports have shown a marginal decline, the industry will maintain its theme of producing 'best quality tea' rather than large quantities as Ceylon tea is currently rated amongst the best in the world.

"Even if the country has to decrease its production, the country will maintain producing quality tea rather than large quantities," Chairman, SLTB, Niraj De Mel told The Sunday Leader. According to De Mel, the main reason for Kenya's success was the country's virgin soil due to which large amounts of tea could be produced.

"Kenyan soil is fresh and countries prefer importing tea produced from virgin soil. Kenya had also been rated as the largest tea exporters in 1997 due to this reason," De Mel said.

According to statistics released by the SLTB, exclusive local tea exports showed a marginal decline in 2004 of 290.6 million kilogrammes compared to 291.5 million kilogrammes in 2003.

However, the country's earnings for exclusive tea exports was recorded at Rs. 70.9 billion in 2004 compared to Rs. 63.1 billion in 2003. "Although there was a decline in exports, earnings increased due to the decline in rupee against the dollar during this period," De Mel said.

Chairman, Tea Association of Sri Lanka, Ajit Goonetilleke maintained although the country's tea exports had shown a marginal decline, the country's tea production had increased from 303 million kilogrammes in 2003 to 308 million kilogrammes in 2004.

Goonetilleke further maintained although Kenya was now rated as the largest tea producer in the world, Ceylon tea was however rated as the best quality tea in the world. "Ceylon Tea still maintains its number one quality," he said.

Kenya, which produced 293 million kilogrammes in 2003, increased its production to 325 million kilogrammes in 2004. However, India which had the largest production in 2003 of 857 million kilogrammes, decreased its production to 820 million kilogrammes in 2003.

De Mel and Goonetilleke both maintained while 38% of the country's tea is produced by large companies, 62% is produced by small holders. They also maintained that Sri Lanka's estate labour wages were currently rated as the highest in the world.

Meanwhile, according to statistics released by Forbes and Walker Tea Brokers (Pvt) Ltd., tea production of 24.8 million kilogrammes for the month of March shows a growth of 1.5 million kilogrammes compared with the 23.2 million kilogrammes produced during the same period last year.

High grown production shows a growth of 1.6 million kilogrammes whilst the medium grown production shows a growth of an estimated one million kilogrammes compared with the same period last year. The low growns however reflect a decline of 1.2 million kilogrammes this month.

- Jamila Najmuddin

Snippets 

Bonanza for JKH shareholders

The Board of Directors of John Keells Holdings Limited has decided to recommend to the shareholders a scrip issue of one ordinary share for every five existing ordinary shares and to recommend to shareholders the payment of a final dividend of 10%, on the increased, post scrip issue, capital. Following the scrip issue, the issued capital of JKH will increase to approximately 398 million shares. With the final dividend of 10% on the increased capital, the total gross payout for the financial year ended March 31, 2005 will be approximately Rs. 1,060 million, an increase of 33% from the payout of Rs. 795 million in the previous year.

HNB Assurance shares moved to CSE main board

Shares of HNB Assurance Ltd. which were hitherto listed on the second board of the Colombo Stock Exchange have been transferred to main board. Thus, HNB Assurance has become only the fourth insurance company to be listed on the main board of the CSE. It was able to earn this upgrading by fulfilling three important criteria relating to the issued capital, profitability and the proportion of shares held by the general public. With an issued capital of Rs. 250 million, it comfortably surpassed the CSE main border requirement of Rs. 75 million. A spokesman for HNB Assurance described this move as "an importance milestone for the company that signifies its stepping into the big league joining the ranks of larger listed companies."

Essential oil and aroma trade delegation visits Sri Lanka

A 15-member delegation representing the world's leading buyers of essential oils and oleoresins toured the main spice producing areas of the island last week. The purpose of their visit is to gain insights into the production and trading systems for spices, essential oils and oleoresins in Sri Lanka. The study tour was organised by the International Federation of Essential Oils and Aroma Traders (IFEAT), in collaboration with the Spices And Allied Products Producers' and Traders' Association (SAPPTA), Spice Council and the Sri Lankan members of IFEAT (Link Natural Products (Pvt) Ltd., H. D. De Silva & Sons (Pvt) Ltd., and EOAS International). The Sri Lanka Export Development Board (EDB) has also joined hands with the organising committee to ensure the success of this programme.

Asian Finance concludes private placement of hire purchase receivables

Asian Finance successfullyconcluded the private placement of hire purchase receivables backed by trust certificates of Rs. 135 million recently. According to Investec Capital (Pvt) Ltd., the arranger / lead manager to the placement, this placement ranks to be the first ever true sale of hire purchase receivable securitisation in Sri Lanka. A special purpose vehicle, AFL hire purchase trust one, was created to issue floating rate senior certificates which will be due over a period of three years. The issue was structured and placed by Investec Capital (Pvt) Ltd. Deutsche Bank AG Colombo branch has been appointed trustee to manage the AFL fund.

HNB introduces forward sales contract system in Jaffna

Hatton National Bank (HNB) signed an agreement with Central Bank in 2004 to implement the 'Poverty Elevation Micro Finance Project' funded by the Japanese Bank for International Cooperation (JBIC), in the north and east regions. During the last two cultivation seasons HNB has signed 12,820 agreements under the forward sales contract scheme which benefited 16,000 farmers throughout the island and recently launched the scheme in Northern Province. During the HNB and CBSL joint visit, the first facility under this scheme to purchase paddy was provided to Anna Industries, a long standing manufacturer of food products. The scheme is a Central Bank sponsored project to provide benefit to farmer by a guaranteed price and also providing guaranteed quality/quantity to buyers. HNB jointly with CBSL organised a training program on the project and the forward sales contract system for bank officials in the newly renovated Jaffna library.

SriLankan launches freighter service to Coimbatore

SriLankan Cargo launched a freighter service to the South Indian industrial city of Coimbatore on April 27, yet another step in its strategy of linking major industrial cities in the region to Colombo and beyond. The twice-weekly service will operate on Wednesday and Saturday with the airline's two AN 12F aircraft, which each have a capacity of 17 metric tonnes of cargo in Palletts. SriLankan Cargo already operates regular freighter services to Chennai (Madras), Bangalore, Trivandrum, and Male. This is in addition to SriLankan Airlines' regular flights servicing 70 times weekly to 10 cities in India. "Our new service to Coimabatore will enhance our strategic objective to connect major industrial centres throughout the subcontinent with Colombo, which is the hub in the ocean," said Head (Cargo), SriLankan Airlines, Nalin Rodrigo.

FWPL programme with Alan Fell

Future Wave (Pvt) Ltd. (FWPL) was launched on April 6 at the Trans Asia Hotel with an introduction presentation on strategic management through the balanced scorecard. FWPL is a professional organisation that is dedicated to human resource development, namely the area of skills development. The company would facilitate both in-house of training offered by FWPL have been designed in consultation with other professionals and the corporate sector. The FWPL team consists of professionals in the fields of marketing, finance and administration. Prasanna Perera is the management consultant for FWPL. FWPL will facilitate a one day programme on 'Strategic Management Through The Balanced Scorecard' with Alan Fell from UK on June 28.

Seylan opens Hasalaka centre

Seylan Bank opened its Hasalaka convenient banking centre recently. Pictured is Chairman, Seylan Bank, Deshamanya Dr. Lalith Kotelawela opening the branch. Director / General Manager / Chief Executive, Seylan Bank, Ajith Pasqual is also in the picture.

Ceylinco Modern Montessori launched

Ceylinco Consolidated launched the group's latest company, Ceylinco Modern Montessori Ltd., a join venture with Modern Montessori International in the UK recently. The collaboration between the two companies will introduce early childhood education of an international calibre to Sri Lanka. The letters of agreement were exchanged by Chairman, Ceylinco Consolidated, Deshamanya Dr. Lalith Kotelawela and Chairman / CEO, Modern Montessori International Group, T. Chandroo. Based in London, the Modern Montessori International chain covers countries such as Singapore, Malaysia, India, Thailand, Australia, New Zealand and China.

PC House wins top IBM awards

PC House (Pvt) Ltd. recently won the 'Top Business Partner Reseller Award For IBM PCD Business' at the IBM Kickoff 2005, an annual event held to recognise the company's top performing business partners in Sri Lanka. Two 'Manager's Recognition' awards were also won by Feizal Carder (sales manager, corporate sector) and Shehan Samarasooriya (sales manager, public sector) of PC House. Expressing delight at his Company's achievement, Chairman, PC House, S.H.M. Rishan said that while revenue contribution was the key criterion in the 'Top Business Partner Reseller Award,' professionalism in conduct, long term thinking and strategic initiatives were the major factors in the 'Manager's Recognition' awards.

'Who Moved My Cheese?' performance

The international performance 'Who Moved My Cheese?' will be presented by founder and CEO, Center for Change Management, Mumbai, Dr. R. L. Bhatia, at the Trans Asia Hotel on May 16.  The Sri Lanka Institute of Directors, which excels in creating opportunities to enrich its membership of over 600 top directors in Sri Lanka will host this programme. This will be a first time experience for corporate Sri Lanka. The programme is based on the best seller Who Moved My Cheese? by Dr. Spencer Johnson and will be a live performance with sound, AVs and a narrator. Dr. Bhatia will also be the guest speaker at the fifth annual general meeting of the Sri Lanka Institute of Directors, which will be held on the same evening.

Cathay celebrates launch of Xiamen services

Cathay Pacific Airways celebrated the official launch of services from Hong Kong to Xiamen at a gala dinner in the Fujian Province city hosted by Chief Executive, Philip Chen with guest of honour, Xiamen Vice Mayor, Xu Mo, Director General, Civil Aviation Eastern Region (Administration Department), Xia Xinhua and about 100 invited guests recently. The three-times-weekly service from Hong Kong to Xiamen commenced on February 28 to extend the airline's network in the Chinese mainland and further strengthen Hong Kong as a global hub and gateway to the mainland.

CIMA Global Leaders Summit 

The Chartered Institute of Management Accountants (CIMA) Sri Lanka division will be hosting the 2005 Global Leaders Summit scheduled for May 26, 27 and 28. This event will feature the highly regarded global leaders of today. This three day event, a part of the CIMA events calendar, is expected to attract over 1,000 delegates from CIMA's global membership and business affiliations providing a welcome boost to business travel into Sri Lanka.

'CIM programme on Emerging Retail Landscape in Sri Lanka'

The CIM Professional Series has been developed by The Chartered Institute of Marketing, Sri Lanka, to provide exposure to CIM diplomates and the business fraternity in Sri Lanka to acquire essential skills in marketing and absorb ideas that are relevant to the constantly changing marketing environment.  The series also gives CIM members the opportunity to gain Continuous Professional Development (CPD) hours towards achieving chartered marketer status. Targeting marketing and sales professionals in the FMCG, service marketing and retail organisations, the CIM professional series programme, 'Emerging Retail Landscape in Sri Lanka - Trends And Challenges' gives an insight into the emerging retailing trends in the Sri Lankan market comparing them with the rest of the South Asian region.  It also discusses the challenges and opportunities companies encounter, followed by a discussion on best practices used. The key speakers are Managing Director, Cargills (Ceylon) Ltd., Ranjit Page, Sales Director, New Zealand Milk Lanka (Pvt) Ltd., Metha Abeygunawardena and Managing Director, ACNielsen Sri Lanka, Dwight Watson.  The programme will be held on May 5 from 2 to 5:30 p.m. at Park Premier Lounge, Excel World.

Two children win trip through Ceylinco 'Ran Daru Sawari'

Two lucky children and their parents were celebrating even before the Avurudhu dawned after they won an all-expenses-paid trip to Sentosa Island in Singapore courtesy Ceylinco Life. The company's island-wide 'Ran Daru Sawari' promotion culminated with a draw at Pinnawela, attended by 250 children from all districts of Sri Lanka, who were treated to lunch, a tour of the elephant orphanage and an outdoor entertainment programme at a ground nearby. The winners of the grand prize of a trip to Sentosa Island were two girls from Hatton and Maradana. They will be accompanied by their parents  on this trip.

Correction

     The picture caption in the story 'Controversy over Lanka's tea production' on page 21 in last week's The Sunday Leader had inadvertently been mentioned as Director General, SLTB, H.D. Hemaratna when it should have read as Chairman, Tea Association of Sri Lanka, Ajith Goonatillake.

     The picture caption on Page 28 in last week's issue of The Sunday Leader titled 'Steuartel - pioneer in telecommunications' should have read as General Manager, Sahan Sonnadara.

House & Property

Access ventures into real estate with Brookland

By Easwaran Rutnam 

Brookland Estate Project at Athurugiriya is the first project undertaken by Access Developments Ltd., a member of the Access Group of Companies, as it enters the real estate business.

Situated approximately one and a half kilometers away from the Athurugiriya town and just 20 minutes away from Colombo, Brookland Estate is complete with pipe-borne water and electricity for each block.

Speaking about the project, Director/CEO, Access Developments Ltd, Chrishan Ferdinando said that Brookland Estate follows the vision of the Chairman, Access Group of Companies to venture into the real estate business.

"We have planned to go for land sales in the short term and housing projects in the medium and long term. Access Developments Ltd. was created with this in mind and Brookland Estate is its first offering," Ferdinando said.

The Athurugiriya land is in a prime location surrounded by a coconut estate, a rubber estate and a paddy field, and has a separate 20-foot wide tarred road that leads to all the blocks.

Access Developments Ltd. has also made it easier for interested customers to purchase lands by offering easy installment schemes through leading banks.

Ferdinando says that the interest charged by the banks is lower than that charged by finance companies and added that for the convenience of the customer Access Developments Ltd., handles all the paper work when obtaining the loans. 

As this is the first project initiated by Access Developments Ltd., the company has decided to offer land at an introductory price of Rs. 68,000 per perch.

Brookland Estate project has taken into account a green environment and has retained most of the trees whilst only clearing the area necessary for building.

Research shows that there is a steady demand for house and property in Sri Lanka and Access Developments Ltd., has selected the opportune time to enter the market.

This view was certified by the General Manager, Access Developments, Ajith Karunaratne who said that there has been a positive response with inquiries about the land even before media advertising was carried out.

Karunaratne noted that there is a big demand for property away from the hustle and bustle of the Galle Road and this has been proven by some of the inquiries the company has received.

"Most of the inquiries have been from residents in the south who are keen to move into a more serene environment closer to Colombo," he said.

Athurugiriya City is fast developing as a prime location for housing and Brookland Estate project is the ideal opportunity for interested customers to purchase land in close proximity to the city.

On the advantage of purchasing land from Access Developments Ltd., Karunaratne explained  that most property development companies in the market today are finance companies.

When purchasing land from these companies on installment schemes, the title for the property is not transferred to the customer until the full payment is made.

"The customer has to wait till he pays the full payment over a period of several months before he starts building on the property as the title needs to be in his name to build on the land," Karunaratne noted.

However  Access Developments Ltd., has arranged  with leading banks to grant loans repayable in maximum 15 yrs (subject to conditions) on easy monthly installments so that the customer could  purchase the land without much of a financial burden.

Karunaratne went on to say that the company is offering a six percent discount to customers who  make full payment on purchase of land

Access Group is recognised for its quality products and services in the market and as Access Developments Ltd., is a member of the group customers are guaranteed of a quality service from the start till the end.

National PVC pipes and fittings - synonymous with quality

Central Industries Ltd., the manufacturers of National PVC pipes and fitings, is a name synonymous with quality.

Central Industries Limited is a public quoted and an ISO 9001:2000 system certified company and a subsidiary of the prestigious Central Finance Group.

Sales Manager - Corporate, Mass Aron and Sales Manager - Dealer Network, Sapumal Herat said that the company commenced operations in 1985 to manufacture quality pipes under the brand name 'National'  and in 1998 embarked on an ambitious diversification programme providing a range of quality products to customers, which are handpicked and are subjected to stringent quality assurance tests before being released to the market.

The product portfolio of the company, both locally manufactured products and imported products include National PVC pipes and  fittings, rigid electrical conduits, irrigation pipes, drainage/sewerage pipes and fittings, rain water roofing gutters and fittings, telecom pipes, water tanks, septic tanks, Krypton electrical switches and accessories, Aquatec water pumps, Netlon range of products, which include agro shading, mosquito netting, fencing, tea withering netting and verandah shading and  Pidilite range of adhesives.

The company markets their products to the retail trade and to the corporate segments thorough their dealer network division and through their projects division headed by Herat and Aron respectively.

In view of heavy competition, advertising and promotion have become an integral component of CIL activities. In addition to the media campaigns CIL also conducts programmes such as dealer conventions and workshops at strategic market locations. The company also conducts programmes is association with relevant government institutions.

In the near future the company will be manufacturing quality electrical switches an accessories under the brand name 'Krypton' to conform to both local and international standards. According to both managers  Krypton will have its unique design and aesthetic features to appeal to the domestic and international markets.

They say the company has an obligation towards their customers in providing quality products and services.

Colour can transform your home

Faced with the daunting array of paint chips at your home center, you might decide that white is a good idea after all. White is safe; searching for the just-right colour can be confusing.

But the world is a colourful place. Wouldn't it be great to bring some of its vitality into your home, knowing that you'll be pleased with the results? You can.  After all, it's the most powerful decorating tool at your disposal. With a little knowledge and a sense of adventure, you can transform your home with colour.

Mastering colour is easier than you might think. You'll quickly discover that there is no such thing as 'bad colour,' just inappropriate colour. Appropriateness is as much about the quality of a colour - how light or dark, how bright or dull, how warm or cool it is - as the hue itself. You can make almost any colour work when you choose and combine them with these characteristics in mind.

You'll also learn that colours don't exist in isolation. They coexist and interact, and you simply can't predict how they will behave in one another's company until you see them together. That's why it's important to audition potential fabric, flooring, paint and other samples in your home before buying materials. Think of it as 'trying on' colour. This fabric works; that paint doesn't. You can almost measure the pleasure as your scheme evolves. 

Decorating materials themselves aren't free, but the magic of colour is, and any combination is yours for the asking. Be open to the possibilities. With a grasp of the basics and a confident approach, you'll soon feel at home with color - and welcome it into your home.

Did you know that the human eye can discern more than six million colours? Of course you are not required to know them all - that's a relief! - and in practice you'll use only a handful in your home.

As you take in the ideas and concepts and begin to formulate your own colour plan, push yourself a little. That's right: push yourself. You can always pull back when you get into unfamiliar (and scary) territory. If you venture confidently in the direction of colors that you love, you are sure to meet with more success than if you were timid to begin with. A home that resonates with colour harmony will be your reward.

Guaranteed solutions in roofing insulation from FRP Services

F.R.P. Services & Co. (Lanka) Ltd. offers the best roofing insulation solutions to the market in keeping with world standards and finest quality. The 25-year-old company has been specialising in insulation solutions from the inception and also offers a range of other high quality products to the construction industry.

The company obtains their products directly from their foreign manufacturers and also insists that they directly sell the product to the customer where they can oversee that high standards are met with in product specification, sales, installation as well as after sales.

Speaking to The Sunday Leader regarding the roofing insulation market, Director Marketing, F.R.P. Services & Co. (Lanka) Ltd., Sudath De Fonseka explained that there are many types of roofing insulation materials available in the market. The most proven and the cost effective type is the aluminium foil. However, selecting the correct type and the best quality is very important as the aluminium foil is continuously exposed to heat / moisture etc.

As a matter of fact the quality of the aluminium layer on the foil makes a big impact on the lifetime as well as the effectiveness of the material. Some traders say it is not so. Due to the quality of the aluminium, the pin hole effect on the surface changers. When the pinhole factor is high the moisture will pass through to the center craft paper and will allow the aluminium to start peeling off from the craft paper.

"Our aluminum foil - Sisalation - has the lowest pin hole factor where almost '0' amount of water vapour is allowed to migrate to the craft paper, which is in between two thin layers of aluminum foil," he explained.

The Australian manufacturer uses only premium grade aluminium foil and virgin craft paper in producing Sisalation. This ensures guaranteed performance and foil to last as long as the roof.

Kimmco Glass Wool is the other product that is widely used in roof insulation. This can be used in combination with Sisalation for optimum results ensuring that almost 0 % of heat is transmitted through the roof and also providing sound control especially in the zincaluminim type roofs.

Regarding the insulation market he pointed out that there are several products that are being sold as insulation but do not really offer any benefit to the customer.

"Foam products are one of such products. Frankly speaking, foam is a good insulation but the thicknesses such as 3mm , 4mm ... etc. does not offer any benefit. Added to same the customers are being cheated by indicating the foam is laminated to an aluminium foil. What you see in every hardware shop is a foam that is bonded to a metalised plastic film. Metalised plastic will never do the job of aluminium. Any other material that looks like aluminium cannot provide the insulation properties of aluminium.

"Apart from this, foam material on the roof can be very much fire hazardous to the building, given the fact that plastic can catch fire very fast and also melt for the heat and transport the fire while letting out toxic gases," said De Fonseka.

Such a product, he says will not be useful to the end user as well as ruin the trust that the users have in insulation.

You will have to use at least 40 mm thick foam  to match the results of 50mm thick glass wool and a layer of foil. Yet this is not practical as the cost of 40mm foam will be far too high and Installation too will be an issue.

However given the fact his company does not forsake profit for quality, they guarantee that their roofing insulation will last as long as the roof of the building lasts.

" This is the reason we ask all potential users of roof insulation to buy their material direct from a specialist rather than accepting packages offered in the market. Thereby they will have a guarantee that they have got value for money and more importantly the purpose of insulation is met rather than being happy in mind for using insulation material in their roof."

FRP Services & Co. (Lanka) Ltd. is also the largest importer of Sisalation aluminum foil and sells this insulation from their office and a few other outlets. The company also expects to set up more of their branches in other strategic towns such as Kandy, Kurunegala .etc. and other popular places so that they can keep an eye on the entire process of selling the product until it is used by the client.

"A client can come to us from any part of the island and we will guarantee a high quality product as well as see to the installation and even offer after sales services and support," added De Fonseka. The company will even offer their expert knowledge to the constructor, mason or the roofing contractor who are to set the material, so that the ultimate benefit is gained in roofing insulation. Being specialists in this field De Fonseka says that several factors are considered when they offer their product. "We advice on how the aluminum foil should be placed to get optimum results, given the fact that in this country the climate can change quickly from very humid conditions to rain, we also see to what type of roofing is use such as asbestos, tiles or zincaluminium and also the method the ceiling is done. All these have to be considered and insulation should be placed at the proper position to obtain results."

Insisting that even if contractors are given the job of putting up a building the client should insist on high quality roofing insulation is used to avoid accidents and unnecessary expenditure in future.

"Ultraviolet rays are very dangerous and can be hazardous to both humans and buildings, so roofing insulation is crucial and using the best quality insulation is important, rather than just settling for a product that is said to be insulation but actually offers no benefit because of its inability to do so," emphasizes De Fonseka.

The latest other product the company is exclusively selling presently is multicell  Polycarbonate panels to provide daylight solutions to buildings. This product is known as Danpalon, manufactured in Israel, and is the only product that is a complete roofing system that guarantees that there will be no leaks whatsoever. Clamps and fasteners are used in this product and there is absolutely no drilling involved.

A roofing system can be set up in a short time and without any drilling being done to the material. The product at the moment is imported on client requirements, and some of the places where this product has been used is Apollo Hospital, Excel World and on the Beira Lake island to name a few.

Holcim to build for masons 

A project was launched recently at the Galle Holcim UKG 'Mahagedara' for the distribution of tools worth Rs. 2 million among tsunami affected masons in the Galle District. A tool kit to the value of Rs. 15,000 was given away to each mason by Holcim Lanka Ltd. as a part of the Rs. 150 million 'Holcim Rebuilding Fund' project.

At the three hour ceremony held on this day, which was attended by 175 masons, the highlight was the lecture delivered by Dr. Chandana Gunawardene on 'Positive Thinking' which lifted the spirits of all the participants.

The main objective of this workshop was to promote unity and empower the masons to start rebuilding their lives which is also the communication theme of Holcim, Building Life.

B. A. Samathapala de Silva, a mason with 45 years experience said that "We lost all our property due to the tsunami. Our tools were washed away. The gravest was the mental agony that we suffered during the last three months. The material and mental support extended by Holcim is highly appreciated at this needy hour."

The Rs. 150 mn 'Holcim Rebuilding Fund' was immediately set up by Holcim Lanka Ltd. with a view to restoring the lives and belongings of those affected by the tsunami. Firstly, Chairman, Manilal Fernando and CEO/MD, Peter Sprig personally visited the Holcim factory and the surrounding villages and provided immediate relief to the needy. Subsequently, the Holcim Rebuilding Fund was set up. Its custodians are Paul Hugan Tobler (Executive Member Holcim / Asian and South Asian Region), Manilal Fernando (Chairman, Holcim Lanka), Peter Sprig (CEO/MD Holcim Lanka), and Sarvodaya is also an active participator.

The Holcim Rebuilding Fund consists of contributions from the staff of Holcim Lanka Ltd., Holcim Headquarters in Switzerland and about 50,000 employees spread across 75 countries.

Manager (CSR), Rathika De Silva said that "Our theme is 'Rebuilding Life'. Tsunami destroyed lives and buildings. We see the role of Holcim as building lives. Holcim cement is produced using local raw material and local human resources, this was in our hearts when we stepped forward to help our own countrymen at a time of absolute crisis."

The other activities of the fund include constructing 750 new houses, providing relief and aid to tsunami affected employees in the Galle factory, constructing a school in Matara, and training 240 Jaffna inhabitants in 'constructing skills.' Holcim's keen dedication and enthusiasm in helping their own sales representatives and distributors was a prominent feature throughout the project.

Marketing Manager, Holcim Lanka, Indika Jayaweera said that "In the aftermath of tsunami, we immediately replaced the stocks of 61 distributors and three sales agents and also renovated their damaged buildings free of charge. In January we conducted a lecture on 'Positive Thinking' to our distributors and agents with a view to psychologically strengthening them, living the theme of Building Life."

He further said that " Holcim has been instrumental in raising the standards of building construction in Sri Lanka by introducing three types of cement to be used for different purposes. In keeping with our motto 'with you in mind' we have exhibited our commitment and dedication to our employees and stakeholders in the aftermath of the tsunami in our genuine and heartfelt efforts to engage in their welfare through Building Life".

SBS floor slabs - a cost effective sloution

Prestressed concrete floor system is the answer to reduce the lost of laying floors by 30%. ICC (International Construction Consortium) has now introduced this SBS floor system by creating yet another novel creation for the construction industry.

ICC established in 1980 is today one of Sri Lanka's leading contractors with multi capabilities in the construction industry. ICC has won the IFAWPCA Gold Medal for Civil Engineering Construction in 2002 and ICTAD Award for Construction Excellence in 2002. It has also achieved ISO 9001:2000 certification.

With the wealth of experience gathered through the years, ICC is one of the pioneer companies to provide complementary assistance to the construction industry. A novel pre-cast product among these is the ICC SBS floor system - an effective, low cost alternative to in-situ concrete floor slabs . While assuring excellent quality, it saves more than 30% on steel and cement costs.

A main problem facing normal in-situ concrete slabs is the enormous amount of bamboo plank props required whereas SBS Floor Systems require no shuttering, being hassle free as well as being a rapid method of construction with pre cast elements manufactured and tested in a state-of-the art laboratory.

ICC SBS Flooring Solution saves money, time and could proudly boast of more than 6,000 SBS slabs completed islandwide with the proven track record a reflection of it. Besides the demand  for this unique product, generally residential floor slabs are designed to impose 150kg per square meter. But a SBS floor slab can bear an enhanced load of up 500kg per square meter. Technical officers of ICC come to the point of construction and deliver technical advise. More over, now ICC has arranged free transport for up to a distance of 20km from their yard at Madapatha to ease the hassle of customers.

Malindu Group -  complete furniture solutions

Malindu Group of Companies has been one of the pioneers in the fields of both timber and furniture industries and over the years has brought honour and prestige to the country.

The establishment was initiated in 1982 by Gamini Ranasinghe who is currently the chairman of the group. A veteran in the field of timber, he initially began his business through the import of timber from countries such as Singapore, Malaysia, Burma, and South Africa under the name Malindu Timber (Pvt) Ltd.

Malindu Timber (Pvt) Ltd was the first company to introduce 'Kempas' to Sri Lanka, which is a mixed hardwood used very famously in the field of construction. Further more the company was also the first to import 1000 tonnes of timber to Sri Lanka in one shipment. Initially starting off as a sole proprietor business, the company today has spread its wings to many other fields. The group currently consists of the following companies: Malindu Timber (Pvt) Ltd, Malindu International, Malindu Exports, and Oxford College of Business.

Malindu International has become one of the most prominent companies within the group which specialises in the manufacture of laminated, knock-down type furniture. The company uses state of the art machinery from USA, UK and Germany and is the only such high-tech furniture company in Sri Lanka.

Over the years the company has specialised in the manufacture of pantry/kitchen systems to the Sri Lankan market and today is the market leader in the manufacture of knock-down type kitchen systems. There are many advantages of using laminated kitchen systems namely: it is water resistant, long lasting, scratch resistant, easily wipes off dirt, and has a wide array of glamorous designs and colours to select from, ranging from classical wood grain colours to high gloss finishes.

Malindu International is today the leading manufacturer of pantry cupboards. The reason for its success has been its high quality laminated doors, speedy service (a tailor made pantry could be delivered and installed within three working days), five and a half year guarantee on all items sold to customers, and its excellent after sales service which no other furniture provider currently offers to its customers.

Away from its pantry cupboards, Malindu International also manufactures household furniture and office furniture. The Group Working Director also went on record to say that they intend on opening up a few showrooms around Colombo shortly and also stated that the company hopes to offer customers high quality laminated and high gloss complete pantry units (with all accessories) and granite tops starting at Rs.200,000.

"Our main objective is to give customers high quality products at affordable prices within a very short period of time. This helps the customers to understand that the same product imported by certain other competitors could be obtained for cheaper prices within a shorter period of time." 

Today Malindu International exports some of its products to Maldives and the Middle East. In an attempt to separate the market and take quality to a new level the group has also introduced enamel kitchens. Known as TAKARA Standard Kitchens, the  company is the sole agents for this world famous brand, which is imported from Japan. The special features of the TAKARA systems are that they are water proof, fire proof, wipes off dirt easily, beautiful, and elegant. In addition Malindu International also offers a lifetime guarantee on TAKARA Standard Kitchen systems, backed by excellent after sales service which is another first in Sri Lanka.

The other ventures of Malindu Group of Companies are:

      Malindu Exports - Manufacture and export of plywood doors to the Middle Eastern market

      Oxford College of Business - Which offers both professional and academic business courses with more than 2000 students currently following various business programmes

      Malindu Chipboards - this is the latest introduction to the group, which manufactures chipboards, which is a better substitute for MDF boards with the added benefit of being water proof and much stronger than MDF.

The perfect lighting - in the bathroom...

The glorious new tub, the beautiful new fixtures, and the sleek countertops always get top billing in the bathroom remodel. But don't forget one of the players most worthy of the spotlight - the lighting.

Lighting designers say a mix of different lighting types is essential in the bathroom to help blend all the bathroom's elements and create a unified look.

Unlike other rooms of the house, the bathroom is crammed with an assortment of materials and finishes.

"You have wall tile, floor tile, shower tile, faucet hardware, towel bars, wallpaper and paint all in a space often smaller than 100 square feet," said Dan Blitzer, a Manhattan-based educator for the American Lighting Association.

There are three general types of lighting: general lighting provides overall illumination; task lighting provides light for a specific task, like reading, homework, and computer work; and accent lighting puts the spotlight on a piece of art, plants, or other favourite possession.

Sara Susanka, a Minnesota architect best known for her books, The Not So Big House (Taunton Press, 1998), Creating The Not So Big House (Taunton Press, 2000), and Not So Big Solutions For Your Home (Taunton Press, 2002), says a mix of lighting in different intensities adds interest and depth to a small space. For example, she suggests combining uplighting in a corner, a pool of light from a table lamp and accent lighting on an interesting feature.

"It's the contrast that makes it (the space) feel bigger," Susanka says.

Meanwhile, lighting experts say that homeowners undertaking bathroom remodeling projects are often in the dark when it comes to thinking about lighting.

"When we look at the amount of money that people invest in building or renovating bathrooms, a proper lighting plan has the potential to deliver dramatic results, costs only a small fraction of the project budget, and yet is often lacking or overlooked," said Gary Taylor, president of Living Lighting in Ontario.

Lighting experts suggest you focus on all the elements of the bathroom, including:

  Showers. Light fixtures should be bright enough so you can see when you're shaving and shampooing. Also, choose one that can stand up to the water.

 Tubs. Experts say you'll want good general light, which a recessed fixture offers. Aim the light's beam at the outside edge of the tub to reduce glare.

 Window. Keep dressings and blinds open during the day to provide plenty of natural light.

 Night light. Illuminate the floor in the toespace between vanities and cabinets with a linear lighting system.

 Glowing light. Indirect - also called cove - lighting through a hidden light source provides a soft, warm glow to the bathroom.

 Mirrors. Warm fluorescent vertical wall sconces will provide you with even lighting on your face - essential for applying cosmetics or shaving.

 Vanities. A halogen light placed above the vanity provides cross lighting when used with wall sconces.

 Table touches. Table lamps add a soft, human touch to the bathroom.

 The ceiling. For an elegant touch - as well as some extra light - suspend a decorative light fixture from the ceiling.

 The commode. Yes, experts even suggest placing focused floor or halogen fixtures above the potty for watercloset reading.

Lowe's Home Improvement Warehouse says on its web site that the options in bathroom lighting have dramatically increased over the past few years. One of the most popular trends is 'design and combine' bath bars in which you choose the wall bracket (or fitter) you like the best and then select from the many available styles of glass shades to go with it.

And if you're afraid you might overdo the lighting, don't be.

"You can never have too much light in the bathroom," said Todd Phillips, president of lighting manufacturer Quoizel. "It's easy to install a dimmer control to reduce the amount of light to create a mood."

- Michele Dawson

Black & Decker dealers feted

Black & Decker Overseas AG Home Appliances represented in Sri Lanka by Delmege General Equipment (Pvt) Ltd., held their first dealer meet recently at The Colombo Plaza Oak Room. The meet was well attended by dealers from around the country.  Managing Director, Delmege Forsyth & Company Ltd, Kosala Dissanayake gave the welcome address followed by  Regional Head, Black & Decker, Sanjiv Dadlani who thanked the dealers for their sales efforts in promoting the range of Black and Decker home appliances.

The dealers were given time to visit the mock up Black & Decker home and learn first hand the features of the various home appliances on display.

The highlight of the evening was the presentation of awards to recognise outstanding sales efforts by Black and Decker dealers. Chairman, Delmege General Equipment, Devaka Cooray together with Director, Delmege, Shamil Mendis and Sanjiv Dadlani gave away the awards.

The Gold Award was won by Laksala Trade Center - Kiribathgoda, Silver Award was won by Paragon Electronics - Ratmalana  and the Bronze Award was won by Samarasiri Electronics (Pvt) Ltd. - Maharagama. Five  regional awards were also given out.

Dumping of asbestos waste

Is  it a fact that the asbestos manufactured in Sri Lanka has been banned in the developed world as it is classified to be  highly carcinogenic in character?

If the answer is yes, could some knowledgeable person or someone in authority explain how is it that in Sri Lanka production goes on at a tremendous pace and even expansion of the industry continues?

All and sundry, it appears, are indifferent to the calamity that could befall the Sri Lankan population. Governments come and governments go. Environmentalist periodically protest but production and expansion of asbestos based products continue.

The manner in which the toxic waste is disposed of is frightening. Scant respect is shown to either the environment or the population living in the environs of these waste dumps. The powers that be are either totally indifferent or helpless to control these unscrupulous industrialists. Who or what is the authority that is supposed to ensure that toxic waste is not disposed in the open?  Is periodic auditing done by the CEA or any other authority to ensure that proper waste management systems are adhered to once these factories are in production?

Some of these industrialists are on record saying that their factories follow very strict pollution control. This may well be the case within the factories itself. However when it comes to the disposal of sludge and asbestos waste the industrialists totally ignore basic norms. Asbestos waste is dumped on open ground and in residential neighbourhoods. This is a carcinogenic time bomb and a death knell to those living in the neighbourhood.

In Mount Lavinia  asbestos waste, sludge and waste polythene material is disposed by a factory in the neighbourhood. This is a regular occurrence. To add insult to injury with every new load the vehicles drive over the already disposed waste, pulverising it and these fine particles are dispersed into the air. Residents in turn inhale these fine particles, the homes carry a layer of fine dust and our system takes this in. Periodically a massive bon fire is also lit to get rid of the polythene bags that are also dumped there.

On a complaint made to the CEA, the DG (obviously an excellent administrator) promptly sent a team on inspection. Photographs were taken and the dump site visited. A letter has been addressed to The Minister of Environment as well. We presume action will be taken soon before cancer takes it sad toll.

Netherlands National Day

Tsunami brought The Netherlands and Lanka closer

Message from the Ambassador, The Netherlands,  Susan Th. Blankhart

After the tsunami struck the island, The Netherlands government responded with new pledges for post-tsunami reconstruction. We aim for this assistance to be delivered in the most transparent and accountable way. We support the efforts of the government to liaise with all stakeholders in the north and east as well as in other parts of the country, particularly through a mutually acceptable system for reconstruction in the affected areas 

April 30 is the National Day of the Kingdom of The Netherlands. It is the day on which 16 million people in the Netherlands and 500,000 Dutch nationals living abroad, celebrate the official Birthday of Her Majesty Queen Beatrix. The year 2005 is a very special year as it is the Queen's silver jubilee.

The Netherlands covers an area 60% of the size that of Sri Lanka. It is flanked to the north and the west by the North Sea, to the east by Germany and to the south by Belgium. Being a very flat country, a recurring theme in Dutch history has been the struggle against the sea. Nearly a quarter of The Netherlands surface is below sea level.

Large areas of land have been reclaimed from the sea through the years. In 1953 The Netherlands experienced an enormous disaster when the dikes in the Southwest broke through, and large parts of the country were flooded and thousands of people died.

As developments in The Netherlands are very much influenced by the constant struggle with the sea, Dutch people in particular felt shaken when the devastating tsunami of  December 26, 2004 struck Sri Lanka and brought enormous suffering and unprecedented destruction.

When it became clear that so many communities had been affected and countless people lost family members, homes and livelihoods Dutch people came forward to help in a big way. Apart from the government contribution, the Dutch people in a nation wide fund-raising event contributed nearly 200 million Euro for people in tsunami affected countries.

On top of these contributions, numerous smaller and larger initiatives were set up to directly assist people especially in Sri Lanka. Dutch people have a special affection for this country based on our common history.

Many Dutch tourists more recently became fond of this island. Therefore all over the island we now find renewed Dutch-Sri Lankan partnership initiatives assisting Sri Lankan people to try to regain their lives after the tsunami.

The process of re-construction is critical and needs to proceed as swiftly as possible. Consulting local stakeholders is essential, along with empowering communities to fully participate in planning and decision making. In my view, the process of re-construction provides a unique opportunity to focus on the long-term interests of the people of Sri Lanka.

The process should be sensitive to the impact on unaffected, neighbouring communities. It is recognised that it is important for all members of society to adopt an inclusive, participative approach, putting partisan interests aside and focusing on the important challenges confronting the country.

Since the mid-1970's Sri Lanka and The Netherlands maintain a programme for development cooperation, which aims at the reduction of poverty in the country. Development cooperation forms an integral part of Dutch foreign policy. Pro-poor social and economic policies, the presence of a conducive system of governance and attention to human rights are in general the most important issues in our development cooperation programmes.

Our primary goal for the Sri Lanka programme is to cooperate towards equitable, sustainable, pro-poor growth and poverty reduction, for the benefit of the people of Sri Lanka; based on objective needs and without discrimination on the basis of political, religious, ethnic or gender considerations.

In the short term therefore the Netherlands development cooperation will concentrate on support for peace enhancing activities. The  violent conflict which affected Sri Lanka brought about poverty and the poor and most vulnerable groups in society are the most heavily affected by the conflict.

After the tsunami struck the island, The Netherlands government responded with new pledges for post-tsunami reconstruction. We aim for this assistance to be delivered in the most transparent and accountable way. We support the efforts of the government to liaise with all stakeholders in the north and east as well as in other parts of the country, particularly through a mutually acceptable system for reconstruction in the affected areas.

The Netherlands and Sri Lanka maintain a strong relationship, ranging from a development partnership, a  mutual cultural heritage cooperation and to ever-increasing commercial ties. I hope that the cordial partnership that has developed in past centuries will be further strengthened in the future, so as to work together towards a new era of economic development, and cultural, cooperation between Sri Lanka and the Netherlands.

May the coming year again witness a further strengthening of the relations between The Netherlands and Sri Lanka, based on mutual respect and friendship.

Trade relations between Sri Lankan and The Netherlands

The Netherlands and Sri Lanka have long standing trading relations.  Total Dutch exports to Sri Lanka in 2004 valued _ 25 million, in agricultural and industrial products.

For agriculture an increase in export value of live animals, food products, beverages and tobacco to Sri Lanka occurred, with a slight decrease in export value of vegetables and fruits, compared to 2003.

In the industrial sector the value of machinery and manufactured goods dropped as compared to 2003.

Total Dutch imports from Sri Lanka in 2004 valued _ 54 million, mainly consisting of industrial products, garments and clothing and showing an increase in manufactured goods. Agricultural imports from Sri Lanka slightly declined, mainly caused by a decrease in live animals and food items.

Over the past five years, Netherlands has been averaging 3 % of the total market share as far as imports into Sri Lanka are concerned. Among the countries of the European Union, the Netherlands still constitutes the fourth largest trading partner of Sri Lanka, in terms of both imports and exports. As far as investment is concerned, Netherlands ranked fourth amongst EU investing countries in Sri Lanka, in the year 2002.

In the year 2003 The Netherlands has come within the top 15 countries ranked by total (Cumulative) Investment in Sri Lanka (based on Projects in commercial operation Under Sec.17 of the BOI Law).

During the year 2004 and up to March 31, 2005 the BOI has approved three projects for investment from the Netherlands with local collaborations.  The value of the investments  from the Netherlands totals up to Rs. 687.88 mn.  These projects have generated employment opportunities to nearly 910 personnel.  One project categorised under services and the other two under wearing apparels.

Source: Royal Netherlands Embassy, based on trade figures of Central Bureau for Statistics in the Netherlands and  BOI Sri Lanka

Dutch development cooperation in Sri Lanka

Structural, bilateral development cooperation between Sri Lanka and The Netherlands started in the mid-'70s with financial aid and technical assistance. Since the '90s the programme concentrated on rural development, environment and rehabilitation. For the coming period the budget available for the structural bilateral programme amounts to approximately LKR 1 billion and 200 million (EUR 10 million) per year. This budget will be invested in peace building, environment, private sector development and some ongoing commitments in other sectors.

Apart from the development cooperation with the Government of Sri Lanka, there are many non-governmental development cooperation ties. Dutch NGOs finance their Sri Lankan partner-organisations for approximately 2 million Euro per year. Via private sector mixed credits and special programs as ORET, PSOM, NMCP approximately 4 million Euro grant money annually are invested in Sri Lanka. The fellowship programme selects on average 40 Sri Lankan short- and long-term scholars to study in the Netherlands.

On top of these structural development cooperation ties The Netherlands provides tsunami aid via the Ports Authorities and the Sri Lanka Railway. Donations of Dutch private citizens for the tsunami victims amount to well over EUR 200 million (Rupees 2.4 billion) for the tsunami affected region. A fair share of this aid will be allocated to Sri Lanka.

Peace building

The Asian Development Bank's North East Community Restoration and Development (NECORD) program is co-funded among others, by The Netherlands. The Dutch contribution is earmarked for Unified Assistance Scheme payments, equipment for Agricultural Service Centres and technical assistance for fisheries credit schemes. Title of the program: Support to Internally Displaced Persons, duration November 2003 till December 2004, total amount LKR three hundred and twenty eight million (EUR 3 million.).

The Consortium of Humanitarian Agencies' (CHA) National Programme on Peace and Development is funded from November 2003 till October 2005 for a total amount of LKR forty nine million (EUR 450.000). This program provides small scale funding to NGOs and CBOs for local initiatives.

ZOA Refugee Care is funded for community rehabilitation activities in the northeast to the tune of LKR eighty two million (EUR 750.000) for the period September 2002 - May 2005. The Netherlands will consider contributing to the North-East Rehabilitation Fund (NERF) once it becomes operational.

Environment

In the environment sector we closely cooperate with the Asian Development Bank in co-funding government programs. The coastal resources management program is co-funded for a total amount of LKR one billion three hundred and eighty eight million (EUR 12.7 million) and runs from July 2000 till December 2006.

The Protected area management program is co-funded to the tune of LKR four hundred and thirty seven million (EUR 4 million), it started in august 2001 and is scheduled to be finalised by July 2007. The ADB credits are used for investments in infrastructure, the Dutch grant money is used for institutional capacity building. As a sequel to this programs the Ministry of Environment and the Central Environmental Authority receive support for institutional capacity development in the environment sector with an emphasis on capacity building at district and community levels.

This LKR three hundred and twenty eight million (EUR 3 million) program has been signed off in October 2003 and will be finalised in December 2006. Capacity building and Advocacy Programme of IUCN-SL has been provided with LKR twenty eight million (US$ 282,000) for a period of three years starting from March 1, 2002 to December 31, 2005. A research programme on Bio-diversity in Uda Walawe area, which is being implemented by IWMI with the assistance of IUCN-SL and Mahaweli Authority, is provided with LKR sixty nine million (US$ 700,000) for a period of three years starting from November 15, 2002.

Other programmes

Sri Lanka and The Netherlands cooperate actively in such diverse areas as private sector development, the preservation of our mutual cultural heritage and public finance management. The longstanding and fruitful cooperation with the Plantation Housing and Development Trust and with the Institute for Policy Studies will come to a close by 2005.

General information on Dutch development cooperation can be found on the web-site of the Netherlands Ministry of Foreign Affairs: www.minbuza.nl.

Many on-going Dutch funded projects

The shared cultural heritage of Sri Lanka and the Netherlands is an integral part of the prevailing bi-lateral relations between the two countries. Notably, the past four centuries of the Dutch-Sri Lankan alliance has had a profound effect on the social, cultural, religious, economic and political spheres of Sri Lanka, resulting in distinctive influences on both the tangible and intangible heritage of the country.

Although alliances in the imperialism age were detrimental to the conquered nation in some respects, recent relations have been mutually beneficial. As a matter of fact, the two countries have developed, and still maintain, a long-lasting and strong relationship.

What remains today of the Dutch Period in Sri Lanka is a mutual heritage that evolved from the interaction and exchange of elements between the Sri Lankan and Dutch cultures. The Central Cultural Fund in Sri Lanka approached Dutch cultural institutions with the proposal to establish a cultural relationship programme, aiming to preserve built heritage from the Dutch Period.

With the close involvement of the Royal Netherlands Embassy, this programme came into practice by the establishment of the Mutual Heritage Centre in 1999. The Centre has implemented several meaningful heritage preservation projects, with the assistance of the Dutch Cultural Fund.

Precisely two years ago, on 30 April 2003, the governments of Sri Lanka and The Netherlands signed a joint policy framework on the preservation of their common cultural heritage. The joint statement is meant to be a dynamic framework for the valuable co-operation in the area of the common cultural heritage, shared by the two countries.

The primary objective of the policy framework is to promote co-operation on the sustainable maintenance and management of mutual cultural heritage in Sri Lanka and The Netherlands, and to identify the priorities for co-operation in the future. It serves also as a benchmark for new project proposals aimed at preserving common cultural heritage.

An example of the valuable co-operation in the field of mutual cultural heritage is the archive programme, implemented by the National Archive in The Netherlands and the Department of National Archives in Sri Lanka, with a facilitating role for the Central Cultural Fund and the Royal Netherlands Embassy. The programme, called Towards A New Age of Partnership (TANAP), encompasses activities such as the development of digital finding aids, courses in old-Dutch handwriting, microfilming the VOC records, a boxing project and the restoration of ancient documents.

The documents, written in many languages, contain information about a variety of subjects, for instance, intrigues at the court in Kandy, populations that have disappeared over the years, local prices of products, weather reports, regional customs, clothing, religion and ancient traditions. Even the oldest handwriting in Tamil is to be found in the VOC archives. The remains are often in a very poor condition, which motivated the initiators of the TANAP programme to undertake immediate action to save an important part of mutual history.

Furthermore, Sri Lanka and The Netherlands undertook a joint effort to renovate the Dutch Reformed Church in Galle. The main purpose of this mission, financed by the Dutch Cultural Fund (14.7 million Rupees), was to share knowledge, experience and information with the Central Cultural Fund.

The church was established in Ceylon in 1642, and is the oldest Protestant Church in Sri Lanka. The church was built and completed in August 1755 and it has since withstood the test of time. The renovation of the church was completed in October 2004. On the 31st of October, at a colourful ceremony, President Chandrika Kumaratunga, ceremonially handed over the church to the President of the Dutch Reform Church.

The most actual and well-known project is the "Avondster Project". The Avondster, a VOC ship from the 17th century, which was wrecked on 23 June 1659 in the harbour of Galle. The project is funded by the Dutch government (66 million Rupees).

 How many times can a ship be wrecked?

The effect of the tsunami on maritime heritage in Sri Lanka

Sri Lanka is strategically located between Arabia and East Asia, at a natural crossroads of navigational routes, and has been a centre of trade and cultural exchange since ancient times. Sri Lanka's seafaring history, and the archaeological riches of her land sites, suggests that her underwater sites should prove comparably fascinating.

Since the early 1990's a Sri Lanka-international team of maritime archaeologists, historians and museum curators have been doing research in the Bay of Galle and in the extensive archives in Sri Lanka and The Netherlands. Underwater surveys have revealed an impressive number of heritage sites, dated from the 13th century up to modern times. Gradually a collection was growing, representing a cross-section of Sri Lanka's rich maritime past.

From 2000 these activities became more institutionalised with the forming of a Maritime Archaeological Unit (MAU) and conservation laboratory under the Mutual Heritage Centre Sri Lanka. This centre is managed by the Central Cultural Fund in cooperation with the Amsterdam Historical Museum, the University of Amsterdam, the Western Australian Museum, and financed by the Dutch Government (66 million Rupees).

The main objective was to extend capacity in Sri Lanka for maritime heritage management and to build a collection for a new national maritime museum.

These goals were met by an excavation project of the European East-Indiaman Avondster in the Bay of Galle. The Avondster was originally an English ship, captured and modified by the Dutch, relegated after a long career to short haul coastal voyages, and wrecked in 1659 while at anchor in Galle Harbour.

The choice of the Avondster for excavation was however based mainly on the physical condition of the site rather than the identity of the ship. After the ship was discovered in 1993 the site was monitored; it became clear that the wreck was increasingly exposed through changes in the dynamics of the seabed, and it was considered important to implement a rescue archaeology project on the site to safeguard this important collection.

From 2001 till the end of 2004 important sections of the ship have been excavated, collections conserved and preparations made to open a first gallery in the National Maritime Museum in Galle at the end of 2005. The programme was so successful that at the conference on the 2001 UNESCO Convention on the Protection of Underwater Cultural Heritage held in Hong Kong 18-20 November 2003, it was decided that the MAU based at Galle would form the basis of the establishment of an UNESCO regional (Asia/Pacific) training centre in underwater archaeological site conservation and management.

On 26 December 2004, only days after the excavation of the Avondster was finalised, the MAU premises and the National Maritime Museum in Galle were destroyed in the tsunami. Luckily all members of the team survived the killer-wave, but a substantial part of the historical collection and equipment were lost. It is unsettling to realise that all the efforts to safeguard an important historical collection have eventually contributed to the opposite; the loss of a substantial part of the excavated collection while the remaining artifacts on the wreck are possibly now better conserved due to a thick layer of tsunami sediment.

After intensive training since 1998 in maritime archaeological techniques and conservation, the staff of the MAU had prepared a programme for the survey, management and presentation of other maritime heritage in Galle starting January 2005. Despite the unfathomable humanitarian disaster that is taking place around them and the loss of their facilities, the spirit of this group of young professionals is unbroken. They are determined that the future for this new discipline and thus their own future should not be washed away by the tsunami.

Immediately after the disaster an international network was activated to bring together the necessary equipment and funds. Nearly three months after the Tsunami destroyed the facilities, the team are in a position to resume their activities. On 24 March the new building for the MAU was officially opened.

With the support of the Cultural Emergency Response Fund, the Netherlands Cultural Fund and various international institutions, the basic infrastructure was restored and the recovered artefacts placed back in conservation in a safe environment. A team of experts in the field of maritime archaeology, conservation, museology and monuments assisted the Sri Lankan team in assessing the damage caused by the tsunami and helped with this first phase of rehabilitation.

 Culture will play an eminent role in the rehabilitation of Galle. Culture and development are the key words. It is foreseen that as early as 2006, a first maritime heritage display will be opened pending the restoration of the Dutch warehouse and the establishment of the New Maritime Museum.

Risk and decay of collections are inherent in almost any kind of historical-archaeological investigation and museum display. It is ironical that the sea took a collection, once formed through a shipwreck, now centuries later for the second time. We were able to bring the recovered collection to safer grounds, but how safe will it be for the future? The fact that the wreck site appears untouched by the Tsunami raises the issue of where is the safest place for the material. However, at the end of the day it will be determination of these young professionals that will safeguard the collection, wherever it is situated, for future generations. With their enthusiasm to show the rich maritime history of Sri Lanka to the world, the maritime heritage might be safeguarded from the biggest threat it faces; the treasure hunters who are still creating a much bigger risk to heritage in the region than any natural disaster.

Robert Parthesius
Director Avondster Project,
Amsterdams Historisch Museum,
University of Amsterdam

Advertorial

Shermans Group - moving to a new level

The Shermans Group - the outcrop of an inspiring tale of entrepreneurship that had its beginnings in 1935 - offers end-to-end solutions in the areas of clearing, transporting and warehousing.

However, the services offered are moving to a new level where the company also offers freight services for importers and exporters. This initiative involves two of the group subsidiaries, Shermans Transport Pvt. Ltd. and Port Cargo Clearing Pvt. Ltd., which are to be converged into Shermans Logistics.

"We are trying to attract both these segments and offer them end-to-end solutions from the point of freight to the end package. In the case of importers, we are offering freight, clearing, warehouse solutions on a pay as you use basis, transportation to the client's location and other services," said Director / General Manager, Anura Fonseka.

The company has conceived a five-year plan with a vision of being the number one logistics solution venture in Sri Lanka.

In a time when the country is going through a development stage with a lot of projects and a lot of opportunities for transportation and logistical solutions, the company has to its advantage the reputed Shermans name and the experience of its wharf department.

Clients would benefit from using this solution since it is more economical than utilising the services separately.

The Shermans Group is very conversant in the trade of exporting and over 90% of its group revenue is from exports.

"This is our expertise. We aim to tap into this expertise and offer end-to-end solutions," asserted Fonseka.

With most export companies opting to outsource now, Fonseka says the days when companies had their own wharf and clearing departments are gone, and as a result, the Shermans Group wharf and clearing departments have evolved into a business unit whereby they offers their services to other companies.

"The rule of thumb in business today is outsource and what we are doing is making a business out of our expertise, and thus offering a great opportunity for other companies to tap into the expertise of a company like Shermans," said Fonseka.

The company also plans to introduce value-added warehousing, which includes sorting, packaging and bar coding.

For warehousing, the group uses its large warehouse complex of 100,000 square feet, which is located in Colombo and in close proximity to the Katunayake airport, renting out the space at competitive rates.

The Shermans Group of Companies is in the process of being re-engineered and Shermans Holdings is a result of the re-engineering and the re-designing of the strategic architecture of the group, where the plan or strategy is to consolidate its businesses.

With a host of changes taking place and a number of exciting plans on the cards, the group added two new directors to the board of Shermans Holdings early this year, introduced a new technology to the country in the form of an alternative building system, entered into a partnership with Premier Pacific Topaz (Pvt) Limited and also plans to enter the tourism sector in the future.

At a press briefing held recently, the company outlined plans to enter into new areas such as housing, power and energy, etc., under its projects dept., and announced that business magnate Tilak de Zoysa and CEO, Commercial Leasing Co. Ltd., Dr. Dilanjan Soysa have joined the board of Shermans Holdings.

The group is confident that with its present strategic planning, it would be able to share its success with the public hopefully by next year, by going in for an IPO.

Panasonic Mobiles make Sri Lankan debut through Abans

Abans Office Automation, which brings to Sri Lanka the latest versions of the world's best in mobile phones, has launched a range of high-tech feature studded Panasonic mobile phones. The company has enhanced its sales operation with the opening of their new showrooms recently at Ja-Ela, Mt. Lavinia and at Galle Road, Kollupitiya.

Panasonic, a frontier brand has gone strides in innovating features with spectacular communication capability beyond words, via pictures still and moving. The phones are fabulous to look at and versatile to use where even the tiniest details are produced with an eye to perfection. Communication has become more intuitive, more sensuous with these sleek and stylish products.

Recently, the Yokohoma based Matsushita Electric Industrial Group, the parent company of Panasonic was awarded the ISO 14001 Certificate. An ISO authorised organisation, Lloyd's Register Quality Assurance Ltd. (LRQA) for environmental compatibility among other issues granted this after a review.

The communiqu‚ said "Another major strength is our ability to rely on the technological skills and expertise of the entire Matsushita Group of companies in order to develop and deliver products and services of unmatched quality and reliability. By making effective use of such group-wide skills and expertise, we are able to (i) ensure that R&D advances are quickly realised in our products, (ii) share intellectual and physical product design resources, (iii) shorten product lead-time, and (iv) enhance overall product quality and performance. Our business domain is diverse, ranging from base station communications systems and mobile telephone terminals to communication measuring solutions."

It is evident that the demand for cellular phones has grown leaps and bounds, vastly due to the manifold features being added to each ensuing model. Downloadable Polyphonic ringtones, camera embedded utilities, 3G, GPRS, SMS and MMS are a few of the interactive add-on features which have taken this generation by storm.  The capability and capacity for audio/ video content has been cited as the main attraction for the consumers. Passion for style and design is preferred over utility functions. As the experts say, the mobile phone is now termed a 'commodity' rather than an appliance as it was years back, since it is found in almost every other's possession, mainly in the urban and suburban populace.

Abans Office Automation has chosen the month of May to provide a great opportunity for every customer who buys a cellular phone from them. This is expected to arouse much excitement as the purchasers will have the opportunity of winning valued electronic appliances, each day, week and at the end of the month. Throughout the month, a daily draw will be held and the winners will qualify for a weekly draw. Subsequently these winners will qualify for the end-of-the-month Grand Draw.

A gift voucher worth Rs.3, 000 is for the daily prize, and the weakly draw offers a choice between a 21" Flatron Colour TV and a 5.1 Channel Home Theatre System. The Grand Draw prize will be also a choice between an LG Side-by-Side Refrigerator, an LG Wireless Home Theatre System and a JVC Camcorder. Those unlucky in the daily and weekly lot, still stand the chance of winning the Grand.

Abans, known for marketing all the leading names in the mobile phone industry, is reckoned also for the genuineness in quality and make, since the sets are procured from the principals and franchise companies directly. A wide range and the latest versions of global brands such as Motorola, Sony Ericsson, Nokia, Panasonic and LG can be found under one roof at Abans Office Automation.

 Book Review - By Dr. Uditha Liyanage

Ready-Made Garment Industry In Sri Lanka: 

Facing The Global Challenge

Edited by Dr. Saman Kelegama  

The Ready-Made Garment (RMG) industry in Sri Lanka accounts for over half of our export earnings and of a third of the country's employment in the manufacturing sector. Hence, its central importance to the country as a whole need not be over emphasised. Importantly, this vital industry is currently facing many challenges. It is in a state of flux in the face of new competition on the one hand, and the emerging external trading environment, on the other. Regional and bilateral trading arrangements and the emergence of China and WTO agreements on textiles and clothing are key facets of the external trading landscape.

It is for the above reasons that Ready-Made Garment Industry In Sri Lanka: Facing The Global Challenge edited by Saman Kelegama is not only topical but also seminal in its contribution to the rather limited stock of organised knowledge on the subject. Clearly, in a country which lets management by opinion (MBO) overshadow management by evidence (MBE) in the realms of politics, and governance at all level, a book replete with data, information and insights on Sri Lanka's RMG industry fills a lacuna. It will help policy makers and industry captains alike to recognise more pointedly, the challenges the industry encounters at present, and forge a way forward for the benefit of the country, at large.

Although the book's chapters are not arrayed in a way that takes the reader from the industry's challenging context (environment/competition), to its current content (composition/structure) and then to its craft (strategy/skill), it is not difficult to discern the presence of the three components, variously featured in the book and their ever present inter- play.

Parts IV and V of the book deal with the environments or context in which the industry is located. Parts I,. II and III address issues of content (structure and process), and strategy- development. At the outset, Kelegama presents two disparate viewpoints that are entertained in regard to the post-2005 period. One school of thought presents a positive scenario. Here, it is argued that world trade in ready-made garments has witnessed rapid expansion over the years.

Infact, chapter IV features the prospect of 40 percent of the firms going out of production in the heat of the open, quota-free market. The book in essence sheds light on this debate. It examines the competition of the RMG sector, its backward and forward linkages, and how it is geared to face this turbulence in the external trading environment. Although, the authors do not posit a bleak future for the industry, their expectations are characterized by an " if-then" stance, which calls for the adoption of specific measures and approaches for the industry's survival and growth.

Part II of the book addresses issues of competitiveness. Tilak and Dilini Fonseka discuss the competitive strength of the garment industry and planning processes at the firm level. Michel Porter told us, way back in 1980 that a firm or an industry must either pursue a cost-leadership strategy or a strategy of differentiation, and that attempting to do a bit of both will put the firm or industry in jeopardy, finding itself "stuck in the middle". In simple terms, you've got to be either cheaper than or be different to your competitor. If your intent is to be cheaper , then your cost structures should enable you to be so. Sri Lanka' s garment industry lead-times, comparative clothing productivity rates and raw material costs result in low profit margins enjoyed by the industry - less than 10 percent after the allocation of overheads.

Importantly, other than a few, the majority of the firms appear to be "stuck in the middle". They do not have the cost - advantage over, say, China, or for that matter, Bangladesh, nor are they able to differentiate their products through quality output and design development. This is borne out by the export market segments which the bulk of the industry, targets.

The book, taken as a whole points to the need to improve operational efficiencies in order to minimise the twin factors of time and cost, while moving away from a commonplace "export push" strategy to a more advanced "production capacity marketing", where the local company has production expertise or design capability, and is able to forge direct linkages with key buyers, and in some instances, establish overseas offices as well.

Ready Made Garment Industry in Sri Lanka : Facing the Global Challenge moves from issues of competitiveness to backward and forward Integration, and thereafter to the external trading environment and the emergence of China and WTO agreements. The book comprises 11 stand - alone essays, with the inevitable fallout of a number of overlapping areas and issues featured across the chapters.

The book, though published in June 2004 carries some articles written a year or two earlier. However, their substance and critical arguments remain valid and provide useful insights into the nature, structure, processes and challenges of the RMG industry.

Dr Uditha Liyanage is Senior Faculty Member of the Postgraduate Institute of Management (PIM)